Gov. Newsom Signs Legislation Reinstating Business Tax Credits
There was a ray of good news this week for thousands of businesses statewide struggling (see related story below) to recover from the damaging economic impacts of COVID and remain competitive in a state with one of the most difficult business climates in the nation. On Wednesday (Feb. 9), Gov. Gavin Newsom signed legislation (SB 113) restoring key business tax provisions, including net operating loss deductions and business incentive tax credits for research and development, that had been suspended at the outset of the COVID pandemic. The Bay Area Council had opposed the suspension of these important tax provisions and joined the California Taxpayers Association, the California Chamber of Commerce and other business groups around the state in advocating for SB 113.
“This is an important step in the right direction in a time when businesses in the Golden State are facing some of the biggest challenges in generations,” said Jim Wunderman, President and CEO of the Bay Area Council. “We should be doing everything in our power to encourage businesses to operate and grow in California. We thank Gov. Newsom and the state legislature for recognizing the critical role the business community plays in restoring the economy of California and the Bay Area, especially as we emerge from the challenging economic impacts of the pandemic.”